Ovum predicts revenue growth challenges expected next year
![Ovum predicts revenue growth challenges expected next year Ovum predicts revenue growth challenges expected next year](/uploads/2013/12/ovum.gif)
Ovum’s has revealed key trends to watch in 2014 as communications service providers (CSPs) seek a better balance between cost and revenue: small cell adoption; data and customer experience management; the move to software-centric networks; increased optical network capacity in the metro; and changes in the infrastructure value chain according to its research into the US$160-billion telecom network infrastructure market chain.
Ovum forecasts low single-digit revenue growth for communications service providers through 2018. The growth of over-the-top players, changes in subscriber behaviours, and regulatory policies are all negatively impacting CSPs' service revenues. This will limit CapEx growth and restrain revenue growth for network infrastructure vendors. Investments in higher-growth revenue opportunities, for example Big Data-related infrastructure and services, LTE, 100G, and the like, will allow vendors to outpace the general market.
Dana Cooperson, VP Network Infrastructure, Ovum, said, “The tight revenue climate facing most CSPs is not likely to reverse anytime soon. For NEPs following these trends, one of the challenges will be of resource allocation. While new trends in network infrastructure cannot be ignored, there must be a balance between putting corporate resources into staying on top of new trends that may take several years to turn a profit versus putting resources into existing, profitable network solutions that have a limited life expectancy.”
Additionally, Ovum also predicts that the big boom in small cell deployments won’t happen in 2014.Telcos will gain confidence to expand software-defined networking (SDN), network virtualization, and network functions virtualization (NFV) trials and early deployments in 2014.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.